Europe Summary and Highlights 13 Aug
Norges slighly less hawkish, if reserving judgement on inflation and rates; NOK off slightly
AUD/NZD eases from 1.21 test seen after NZ inflation expectations data
UK GDP holds up, but recently stagnant, GBP unmoved
Europe
NOK slightly weaker out of the Norge’s Bank, EUR/NOK up around 30 pips. No change in policy as expected, though somewhat less hawkish in acknowledging the ‘welcome’ downside surprises to inflation while withholding judgement on whether that materially affects the outlook and possible need for any further hike. Oil also slightly off on the day, -$1.5.
UK GDP holds up better than expected in June coming in at 0.3%m/m vs market flat, although leaving Q2 at 0.4%q/q, in line with consensus. With downward revisions, the 3mma is also just 0.05% so still stagnant of late. EUR/GBP broadly flat on morning, under 0.8550.
NZD remains slightly off since the downside surprise in inflation expectations data though trims from overnight lows. 1.21~ on AUD/NZD resistance caps and leans cross back from the day highs.
Asia Session
Regional equities are outperforming U.S. peers on optimism. Korean equities are gaining the most, followed by Japanese while U.S. equities are performing individually. There does not seem to be fundamentally changing headlines coming out, thus the move may not last. AUD/USD is trading 0.22% lower at 0.7046. NZD/USD is trading 0.47% lower on sharply lower RBNZ inflation expectation while USD/CAD rises 0.05%.
It is reported that the United Arab Emirates had released a further tranche of Iran's frozen assets held in Emirati banks. Such seems to be instilling more optimism in the geopolitical front. USD/JPY is little changed at 159.32, down 0.05% for the session. Else, EUR/USD is up 0.02%and GBP/USD down 0.02%.